Capital One recently made an exciting announcement on November 4, 2021. The renowned financial institution is launching its first-ever premium card, with an array of benefits that will undoubtedly appeal to frequent travelers. While these perks may entice potential cardholders, it’s essential to consider what other service providers offer before making a final decision. So, before rushing to sign up for your new account, it’s worth exploring what the Capital One credit card provides and whether it outperforms its competitors.
If you’re considering the Capital One Venture X card, it’s important to note that there is a $395 annual fee. Keep in mind that you’ll need to pay this fee upfront each year to hold the card. While this fee may seem steep compared to the Capital One Venture Rewards card, which has an annual fee of $95, it’s worth taking a closer look at what you’ll be getting in return. When compared to the American Express Platinum Card’s annual fee of $695, the Capital One Venture X card offers a much better deal. However, it’s important to assess the benefits and ensure that they are worth the $395 fee before deciding if this card is right for you.
If you’re looking for a credit card that rewards you generously, the Capital One Venture X is one you should definitely consider. As a new cardholder, you can earn 100,000 bonus miles, which translates to $1,000 in travel, but only if you’re able to spend $10,000 within the first six months after opening your account. Additionally, they have a limited-time offer whereby new cardholders can receive up to $200 back in statement credits for vacation rentals charged to their account within the first year. While the $10,000 spending requirement may seem daunting, Forbes has done the math and suggests spending at least $1,700 to qualify. Compared to the Chase Sapphire Reserve, which requires spending $4,000 within three months to earn 50,000 bonus points, the Capital One Venture X is a great deal.
Credit Score Rating Required
To be eligible for a Capital One Venture X credit card, you need to have an outstanding credit score. Although Capital One Venture may consider fair credit scores of 670, this high-end card demands a significantly higher score. As per Bankrate, Capital One suggests excellent credit scores within the range of 800 to 850. This criterion is similar to other credit cards that require top-notch credit scores. Thus, before dismissing Capital One Venture X, it’s worth exploring other unique features that differentiate it from other cards.
Foreign Transaction Fees
Once you have your credit card and have earned your travel benefits, the next step is to explore the world. The Capital One Venture X card offers a great feature of not charging any foreign transaction fees, even when you are outside the United States. Foreign transaction fees are usually charged to your credit card bill when you purchase something from a foreign bank or in a currency other than the US dollar. This fee includes a currency conversion fee and an issuing bank fee. Compared to Visa and MasterCard, which usually charge a currency conversion transaction fee of 1%, the Capital One Venture X card is much better in this regard.
When applying for a new credit card, it’s important to keep an eye out for the annual percentage rate (APR). This refers to the interest rate that applies to your card if you don’t pay off the balance each month. If you see a 0% intro purchase APR, it means you won’t be charged interest on purchases for a limited time set by the card issuer. A 0% intro APR on balance transfers means that any new purchases on your credit card won’t be charged interest, even if you don’t pay off your balance in full each month. Unfortunately, Capital One Venture X doesn’t offer an intro APR for purchases or balance transfers. This may make it less appealing to cardholders who have a history of missing payments, especially when compared to Capital One Venture Rewards, which offers a 0% intro APR for 15 months. However, the lack of intro APR can be seen as an incentive to pay off debts on time and avoid incurring interest. The card’s regular APR ranges from 16.99% to 23.99% variable APR.
Booking your travel through the Capital One travel portal is the best way to ensure you maximize your travel benefits. You can earn 5 points for every dollar spent on bookings made through the portal. Additionally, you can earn 10 points for each dollar spent on prepaid hotels and car rentals. The miles you earn do not expire for the lifetime of your account, and you can transfer them to your travel partners. Unlike other credit cards, you are not limited to redeeming your miles solely for travel purchases. However, it’s essential to note that transferring your miles to travel partners may not yield as high a value as other cards, such as the Chase Sapphire Reserve. The redemption rate starts at 1 cent per mile to 2.36 cents per mile, significantly lower than the Sapphire Reserve’s 4 cents per point. For travel purchases made within the past 90 days, transferring your miles at 1 cent per mile is possible. If you prefer redeeming your miles for non-travel purchases such as PayPal or gift cards, the value of your miles may be considerably lower.